The cab based startup has come up in open and filed an appeal to question the rule of GST law in which it is mentioned that all the cab operators have to pay GST on the fares collected by the drivers or cab owners.
A startup cab aggregator Opta cab has asked the question in reference to such ruling and said that this will create a problem to all the cab service providing companies.
In the statement, it was said, “This kind of regulations impose huge legal costs, and create an entry barrier for startups like us. The policy needs to change.”
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GST experts have gone up to say that such kind of ruling will certainly create an issue for the cab startups as “it affects their liquidity and increases their operational risks and costs.”
More of the officers of state government has stated the rule as detrimental to the startups and hints at the more discouraging steps towards self-employment and generation.
Mentor for indirect tax expert committee at Bangalore Chamber of Industries & Commerce (BCIC) stated that “The policy looks discriminatory against small entrepreneurs, and imposes a tax cost on e-commerce cab aggregators on a consideration that they don’t collect.”
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In other instances by a tax expert, the person said that collecting GST from the cab companies on the fares collected by the drivers is a very weird provision and must be seen thoroughly.
